Ohio National Trail Lawsuits: Texas Judge Finds Contract “Ambiguous”
August 27, 2019 by Mrinalini Krishna
A Texas judge has determined a contract between NEXT Financial and Ohio National entities was ambiguous and recommended denying motions for partial summary judgments by both parties in a lawsuit pertaining to non-payment of trail commissions on certain variable annuities contracts.
The decision is being watched closely by a host of broker-dealers who have sued Ohio National for similar reasons.
The parties will have 14 days to file any objection to these recommendations. However, U.S. Magistrate Judge Frances H. Stacy’s ruling through a memorandum and recommendation is not final. The decision rests with U.S. District Court Judge Alfred H. Bennett, who may or may not go along with Stacy’s recommendation.
“NEXT Financial believes its position is a strong one,” says Andrew R. Harvin, partner at Doyle, Restrepo, Harvin & Robbins, who is representing NEXT Financial.